- Associated Press - Monday, June 15, 2015

WASHINGTON (AP) - The Supreme Court ruled Monday that one of the nation’s biggest law firms is not entitled to recover $5.2 million in legal fees it incurred in the course of a bankruptcy proceeding.

The 6-3 ruling said the firm Baker Botts could not collect additional fees it billed during a side dispute over whether the firm should be paid $117 million in fees earned representing Tucson-based copper-mining giant Asarco in the underlying bankruptcy.

A U.S. bankruptcy court in Texas initially awarded the firm $117 million in 2011 for its work in Asarco’s Chapter 11 bankruptcy proceeding. But Asarco objected and the firm spent another $5.2 million in separate litigation defending its fees. A federal appeals court ruled that “fees for defense of fees” could not be paid.

The Supreme Court affirmed the lower court, finding that federal law does not allow a bankruptcy court to award attorney fees solely for the extra work performed to justify fees in the underlying case.

Copyright © 2018 The Washington Times, LLC.

The Washington Times Comment Policy

The Washington Times welcomes your comments on Spot.im, our third-party provider. Please read our Comment Policy before commenting.


Click to Read More and View Comments

Click to Hide